The Education Investor: Third Quarter 2003

Authors: Outsell Client Services, Client Services; Eduventures, Inc.

This quarterly installment of The Education Investor offers a snapshot of third quarter private investment and M&A activity within the education industry. Private investment in education companies declined 12 percent to $49.2 million in the third quarter of 2003. However, investment remained close to the $50 million mark. Merger and acquisition activity also remained steady, with 31 announced transactions representing an increase of just two deals over the second quarter.

In addition, in an effort to further enhance Eduventures' ongoing analysis and tracking of the education industry investment and M&A landscape, we have introduced a new, quarterly section in this edition of The Education Investor. With continued activity in the for-profit higher education market, this quarter's piece proposes a "lifetime student value" valuation multiple as a tool for assessing and evaluating the price paid in acquisitions of for-profit postsecondary institutions.